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SNA System: Just-in-Time Release of Scheme Funds

4 March 20251 min read
ECONOMYSNA System:Just-in-TimeRelease of SchemeFunds4 March 2025safalsetu.com

Why in the news

The Single Nodal Agency (SNA) framework for centrally sponsored schemes (CSS) was in focus for cutting idle cash and borrowing costs.

Key facts

  • SNA seeks better transparency and efficiency in CSS.
  • Funds are held across several accounts for ‘Just in Time’ release.
  • Savings so far: ₹11,000 crore.

Why it matters

  • Avoids needless interest payments and idle balances.
  • Timely funds for Jal Jeevan Mission, Pradhan Mantri Awas Yojana and Swachh Bharat Mission.

Way forward

  • States want CSS rationalised with more spending flexibility.
  • Finance commissions may suggest balancing state autonomy with central oversight.

Exam angle

  • SNA = Single Nodal Agency; CSS = centrally sponsored schemes.

Test yourself

1. What release principle does the SNA system use for centrally sponsored scheme funds?

The SNA system ensures 'Just in Time' release.

2. How much has the SNA system reportedly saved the Union government so far?

The notes state savings of ₹11,000 crore.

3. Under the SNA system, scheme funds are released on which basis?

Just in Time release is the SNA principle.

This topic is part of Daily Current Affairs 4 March 2025 (19 topics).

All topics of the dayDay quizMarch 2025

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